Company profile

Ticker
ARES
Exchange
CEO
Michael J. Arougheti
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
Former names
Ares Management LP
SEC CIK

ARES stock data

(
)

Calendar

28 Feb 20
9 Apr 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Dec 19 Sep 19 Jun 19 Mar 19
Revenue 568.95M 272.64M 286.88M 304.66M
Net income 38.47M 33.33M 32.14M 44.95M
Net profit margin 6.76% 12.23% 11.20% 14.75%
Net change in cash -13.82M
Cash on hand 138.38M 152.2M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 1.43B 1.22B 1.09B 964.8M
Net income 148.88M 57.02M 76.18M 111.81M
Net profit margin 10.39% 4.68% 7.02% 11.59%
Net change in cash 28.14M -8.68M -223.93M
Cash on hand 138.38M 110.25M 118.93M 342.86M

Financial data from company earnings reports

Date Owner Security Transaction Code $Price #Shares $Value #Remaining
26 Mar 20 Ares Management Common Stock, $0.0001 par value per share Grant Aquire A 0 40,135 0 40,135
23 Mar 20 Michael R McFerran Class A Common Stock Payment of exercise Dispose F 22.71 14,554 330.52K 759,728
20 Feb 20 Ryan Berry Class A Common Stock Sell Dispose S 40.18 29,726 1.19M 600,640
14 Feb 20 Ryan Berry Class A Common Stock Payment of exercise Dispose F 40.01 75,955 3.04M 630,366
14 Feb 20 Ryan Berry Class A Common Stock Option exercise Aquire M 19 105,681 2.01M 706,321
14 Feb 20 Ryan Berry Options Class A Common Stock Option exercise Dispose M 19 105,681 2.01M 422,728
31 Jan 20 Aghili Naseem Sagati Class A Common Stock Grant Aquire A 0 10,000 0 161,622
31 Jan 20 Aghili Naseem Sagati Class A Common Stock Payment of exercise Dispose F 36.06 2,594 93.54K 151,622
65.2% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 168 159 +5.7%
Opened positions 40 37 +8.1%
Closed positions 31 20 +55.0%
Increased positions 68 64 +6.3%
Reduced positions 48 41 +17.1%
13F shares
Current Prev Q Change
Total value 6.46B 2.04B +215.8%
Total shares 78.42M 76.14M +3.0%
Total puts 0 15.4K -100.0%
Total calls 35.4K 28.63K +23.6%
Total put/call ratio 0.5
Largest owners
Shares Value Change
Capital World Investors 10.19M $363.56M +0.0%
Vanguard 6.89M $246M +0.5%
Capital International Investors 6.59M $235.09M +1.0%
BLK BlackRock 5.29M $188.8M +6.2%
Royce & Associates 3.25M $116.01M -16.6%
Wellington Management 2.97M $106.09M -20.0%
William Blair Investment Management 2.58M $92M NEW
Alliancebernstein 2.56M $91.43M -16.6%
IVZ Invesco 2.29M $81.61M -4.4%
AMP Ameriprise Financial 2.01M $71.91M -9.2%
Largest transactions
Shares Bought/sold Change
William Blair Investment Management 2.58M +2.58M NEW
Peregrine Capital Management 757.56K +757.56K NEW
Wellington Management 2.97M -744.15K -20.0%
Royce & Associates 3.25M -649.3K -16.6%
QLT Quilter 622.7K +622.7K NEW
GS Goldman Sachs 447.53K -515K -53.5%
Alliancebernstein 2.56M -510.41K -16.6%
American Century Companies 1.36M +496.01K +57.6%
Millennium Management 363.76K -482.63K -57.0%
Laurion Capital Management 0 -457.84K EXIT

Financial report summary

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Risks
  • Difficult market and political conditions may adversely affect our businesses in many ways, including by reducing the value or hampering the performance of the investments made by our funds or reducing the ability of our funds to raise or deploy capital, each of which could materially reduce our revenue, earnings and cash flow and adversely affect our financial prospects and condition.
  • Political and regulatory conditions, including the effects of negative publicity surrounding the financial industry in general and proposed legislation, could adversely affect our businesses.
  • Changes in relevant tax laws, regulations or treaties or an adverse interpretation of these items by tax authorities may adversely affect our effective tax rate, tax liability and financial condition and results.
  • Our business depends in large part on our ability to raise capital from investors. If we were unable to raise such capital, we would be unable to collect management fees or deploy such capital into investments, which would materially reduce our revenues and cash flow and adversely affect our financial condition.
  • We depend on the members of the Executive Management Committee, senior professionals and other key personnel, and our ability to retain them and attract additional qualified personnel is critical to our success and our growth prospects.
  • Our future growth depends on our ability to effectively attract, retain and develop human capital in a highly competitive talent market.
  • Our failure to appropriately address conflicts of interest could damage our reputation and adversely affect our businesses.
  • Conflicts of interest may arise in our allocation of co-investment opportunities.
  • The investment management business is intensely competitive.
  • Poor performance of our funds would cause a decline in our revenue and results of operations, may obligate us to repay performance income previously paid to us and could adversely affect our ability to raise capital for future funds.
  • ARCC’s management fee comprises a significant portion of our management fees and a reduction in fees from ARCC could have an adverse effect on our revenues and results of operations.
  • We may not be able to maintain our current fee structure as a result of industry pressure from fund investors to reduce fees, which could have an adverse effect on our profit margins and results of operations.
  • Rapid growth of our businesses, particularly outside the United States, may be difficult to sustain and may place significant demands on our administrative, operational and financial resources.
  • We may enter into new lines of business and expand into new investment strategies, geographic markets and businesses, each of which may result in additional risks and uncertainties in our businesses.
  • If we are unable to consummate or successfully integrate development opportunities, acquisitions or joint ventures, we may not be able to implement our growth strategy successfully.
  • Extensive regulation affects our activities, increases the cost of doing business and creates the potential for significant liabilities and penalties that could adversely affect our businesses and results of operations.
  • Regulations impacting the insurance industry could adversely affect our business and our operations.
  • The publicly traded investment vehicles that we manage are subject to regulatory complexities that limit the way in which they do business and may subject them to a higher level of regulatory scrutiny.
  • Failure to comply with “pay to play” regulations implemented by the SEC and certain states, and changes to the “pay to play” regulatory regimes, could adversely affect our businesses.
  • The long-term impact of the Basel III capital standards is uncertain.
  • Economic sanction laws in the United States and other jurisdictions may prohibit us and our affiliates from transacting with certain countries, individuals and companies, which could negatively impact our business, financial condition and operating results.
  • The U.K.'s exit from the EU (“Brexit”) could adversely affect our business and our operations.
  • We are subject to risks in using prime brokers, custodians, counterparties, administrators and other agents.
  • A portion of our revenue, earnings and cash flow is variable, which may make it difficult for us to achieve steady earnings growth on a quarterly basis and may cause the price of shares of our Class A common stock to decline.
  • Cybersecurity risks and cyber incidents could adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information and confidential information in our possession and/or damage to our business relationships, any of which could negatively impact our business, financial condition and operating results.
  • We may be subject to litigation risks and may face liabilities and damage to our professional reputation as a result.
  • Employee misconduct could harm us by impairing our ability to attract and retain investors and subjecting us to significant legal liability, regulatory scrutiny and reputational harm.
  • Fraud and other deceptive practices or other misconduct at our portfolio companies, properties or projects could similarly subject us to liability and reputational damage and also harm our businesses.
  • Our use of leverage to finance our businesses exposes us to substantial risks.
  • Operational risks may disrupt our businesses, result in losses or limit our growth.
  • The historical returns attributable to our funds should not be considered as indicative of the future results of our funds or of our future results or of any returns expected on an investment in shares of our Class A common stock.
  • Valuation methodologies for certain assets can be subject to significant subjectivity, and the values of assets may never be realized.
  • Market values of debt instruments and publicly traded securities that our funds hold as investments may be volatile.
  • Our funds may be unable to deploy capital at a steady and consistent pace, which could have an adverse effect on our results of operations and future fundraising.
  • Our funds depend on investment cycles, and any change in such cycles could have an adverse effect on our investment prospects.
  • Dependence on significant leverage by our funds subjects us to volatility and contractions in the debt financing markets could adversely affect our ability to achieve attractive rates of return on those investments.
  • Some of our funds may invest in companies that are highly leveraged, which may increase the risk of loss associated with those investments.
  • Certain of our funds utilize special situation and distressed debt investment strategies that involve significant risks.
  • Certain of the funds or accounts we advise or manage are subject to the fiduciary responsibility and prohibited transaction provisions of ERISA and Section 4975 of the Code, and our businesses could be adversely affected if certain of our other funds or accounts fail to satisfy an exception under the “plan assets” regulation under ERISA.
  • Our funds may be held liable for the underfunded pension liabilities of their portfolio companies.
  • Our funds’ performance, and our performance, may be adversely affected by the financial performance of our portfolio companies and the industries in which our funds invest.
  • Third-party investors in certain of our funds with commitment-based structures may not satisfy their contractual obligation to fund capital calls when requested by us, which could adversely affect a fund’s operations and performance.
  • Our funds make investments in companies that are based outside of the United States, which may expose us to additional risks not typically associated with investing in companies that are based in the United States.
  • Many of our funds make investments in companies that we do not control.
  • Increased regulatory scrutiny and uncertainty with regard to expense allocation may increase risk of harm.
  • We derive a substantial portion of our revenues from funds managed pursuant to management agreements that may be terminated or fund partnership agreements that permit fund investors to request liquidation of investments in our funds on short notice.
  • Third-party investors in many our funds have the right to remove the general partner of the fund and to terminate the investment period under certain circumstances. In addition, the investment management agreements related to our separately managed accounts may permit the investor to terminate our management of such accounts on short notice. These events would lead to a decrease in our revenues, which could be substantial.
  • A downturn in the global credit markets could adversely affect our CLO investments.
  • Our funds may face risks relating to undiversified investments.
  • The performance of our investments may fall short of our expectations and the expectations of the investors in our funds.
  • Our funds may be forced to dispose of investments at a disadvantageous time. Furthermore, we may have to waive management fees for certain of our funds in certain circumstances.
  • Our real estate funds are subject to the risks inherent in the ownership and operation of real estate and the construction and development of real estate.
  • Certain of our funds invest in the power, infrastructure and energy sector which is subject to significant market volatility. As such, the performance of investments in the energy sector is subject to a high degree of business and market risk.
  • Investments in energy, manufacturing, infrastructure and certain other assets may expose us to increased environmental risks and liabilities that are inherent in the ownership of real assets.
  • Our investments in infrastructure assets may expose us to increased risks and liabilities.
  • Hedging strategies may adversely affect the returns on our funds’ investments.
  • If we were deemed to be an “investment company” under the Investment Company Act, applicable restrictions could make it impractical for us to continue our businesses as contemplated and could have a material adverse effect on our businesses.
  • Due to the disparity in voting power among the classes of our common stock, holders of our Class A common stock will generally have no influence over matters on which holders of our common stock vote and limited ability to influence decisions regarding our business.
  • The Holdco Members are able to significantly influence the outcome of any matter that may be submitted for a vote of holders of our common stock.
  • As a “controlled company”, we qualify for some exemptions from the corporate governance and other requirements of the NYSE.
  • Certain actions by our board of directors require the approval of the Class B Stockholder, which is controlled by the Holdco Members.
  • Potential conflicts of interest may arise among the Class B Stockholder and the Class C Stockholder, on the one hand, and the holders of our Class A common stock and/or preferred stock, on the other hand.
  • Our certificate of incorporation states that the Class B Stockholder is under no obligation to consider the separate interests of our other stockholders and contains provisions limiting the liability of the Class B Stockholder.
  • The Class B Stockholder will not be liable to us or holders of our Class A common stock for any acts or omissions unless there has been a final and non-appealable judgment determining that the Class B Stockholder acted in bad faith or with criminal intent, and we have also agreed to indemnify other designated persons to a similar extent.
  • The provision of our certificate of incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against us and our directors, officers and stockholders.
  • Our ability to pay dividends to the holders of our Class A common stock may be limited by our holding company structure, applicable provisions of Delaware law and contractual restrictions or obligations.
  • The Class B Stockholder or the Class C Stockholder may transfer their interests in the shares of our Class B common stock or the shares of our Class C common stock, respectively, which could materially alter our operations.
  • Our certificate of incorporation also provides us with a right to acquire shares of our Class A common stock under specified circumstances, which may adversely affect the price of shares of our Class A common stock.
  • Other anti-takeover provisions in our charter documents could delay or prevent a change in control.
  • We will be required to pay the TRA Recipients for most of the benefits relating to our use of tax attributes we receive from prior and future exchanges of Ares Operating Group Units and related transactions. In certain circumstances, payments to the TRA Recipients may be accelerated and/or could significantly exceed the actual tax benefits we realize.
  • Tax consequences to the direct and indirect holders of Ares Operating Group Units or to general partners in our funds may give rise to conflicts of interests.
  • The market price and trading volume of shares of our Class A common stock may be volatile, which could result in rapid and substantial losses for holders of our Class A common stock.
  • An investment in shares of our Class A common stock is not an investment in any of our funds, and the assets and revenues of our funds are not directly available to us.
  • The market price of shares of our Class A common stock may decline due to the large number of shares of Class A common stock eligible for exchange and future sale.
  • We cannot assure holders of our Class A common stock that our intended dividends will be paid each quarter or at all.
  • Dividends on shares of the Series A Preferred Stock are discretionary and non-cumulative.
  • Future changes in the foreign taxation of businesses or U.S. taxation of businesses may adversely affect our business, financial condition and operating results.
  • We are a corporation, and applicable taxes will reduce the amount available for dividends to holders of our Class A common stock in respect of such investments and could adversely affect the value of our Class A common stockholders’ investment.
  • Applicable U.S. and foreign tax law could adversely affect our ability to raise funds from certain foreign investors, increase our compliance or withholding tax costs and conflict with our contractual obligations.
  • Limitations on the amount of interest expense that we may deduct could materially increase our tax liability and negatively affect an investment in shares of our Class A common stock.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
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